The best secured credit cards in Canada
Do you have bad credit or no credit? Are you afraid of being denied by a regular credit card application? Find a secured credit card that can help rebuild your credit history or start from scratch.
better choices made
to Canada’s top financial institutions
Cash Back Card
Earn 2% Money-Back Rewards on purchases in two 2% Money-Back Categories of your choice, and 0.50% Money-Back Rewards on all other purchases.
No Fee Card
Collect 4% in CT Money‡ at Canadian Tire and 1.5% on your first $12,000 per year in grocery purchases (excludes Costco and Walmart)
Rewards Points Card
Apply now and you could earn up to 30,000 bonus points with the American Express Cobalt® Card
What is a secured credit card?
A secured credit card works just like a regular, unsecured credit card, with one exception: it requires an upfront security deposit for activation. Typically, your credit limit will be the same amount as your deposit, so if you put up $600, that will be the limit on your card.
This deposit is for the provider's benefit and acts as a sort of collateral in the event that you don't pay your statement. Because of this, the risk on the providers' end is greatly reduced, and the card is much easier to be approved for as a result. This is the main reason why secured credit cards are ideal for users trying to build or repair their credit.
As you use your secured credit card responsibly, your credit score will improve over time, and eventually you'll have a good enough score to apply and get approved for an unsecured credit card. Depending on your provider, you could be automatically offered an upgrade to an unsecured card, or you may simply have to close your secured account and open a new credit card account somewhere else. Either way, you'll have your security deposit returned to you.
How to apply for a secured credit card
Depending on your financial institution, you may not see secured credit cards visibly offered on their website. Many larger banks do offer these cards, but you may have to call them or visit a branch in person to apply. Alternately, smaller financial institutions will typically make their secured credit cards available to apply for online. In this case, the process is quite easy.
- Select the card you wish to apply for
- Read the card's terms and conditions and accept
- Submit your personal information (name, address, social insurance number, employment, etc.)
- Wait to hear if you're approved. If so, you'll need to deliver your security deposit by cheque or bank transfer to active the card.
In the case that you're not approved, don't jump the gun and apply for another card again immediately. Each credit card application involves a hard credit check, and too many at once will hurt your credit score and further reduce your likelihood of being approved for future cards. With this in mind, wait a period of six months before applying again.
Why should I get a secured credit card?
What are the disadvantages of secured credit cards?
What happens to my security deposit?
How long do you have to use a secured credit card?
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